A £50,000 grant to expand the Lightbox has been delayed after Woking Borough Council (WBC) expressed concerns at the financial outlook of the gallery.

The Lightbox has applied to WBC for funding to create a new exhibition room to meet a growing demand from community groups.

WBC already backs the Lightbox with a yearly grant but at a meeting of the executive last week, councillors expressed concern about committing more funding without a detailed look at the gallery’s accounts.

Figures showed the organisation had a deficit of £162,495 for 2010/11 and budget forecasts suggest a £82,000 shortfall in 2012/13.

While supportive of the Lightbox and its expansion, Councillor Melanie Whitehand questioned whether those outside the borough could be charged an entrance fee.

She said: “What concerns me about the Lightbox is that we give them a grant every year and now they would like Woking to give them 50% of the costs but there does not seem to be a plan to charge for entrance.

“Essentially Woking borough taxpayers are paying for the use of the Lightbox for others. If you are a resident of Woking you are excluded from charges, that is something we can consider.”

The Lightbox had hoped WBC would match the £50,000 applied for through Biffa's Landfill Communities Fund and work was planned to be completed by the autumn, but councillors elected to defer the decision for a full report on the Lightbox's operations.

Chief executive Ray Morgan said the terms of its licence meant the Lightbox was required to have free entry and backed any decision to keep the arts and culture free.

He said: "They secure more money through donations than if they charged. We need to know, are they running it as effectively as they might?

"The value of the arts is about the value to the community not a balance sheet.

“It is a venue that attracts people to our town who make some contribution when they come here and contribute extra income.

“We have to make our town a destination for a diverse number of reasons.”

The museum and gallery currently has a two-year waiting list for groups wishing to use its space and has drawn up plans for a mezzanine floor.

A decision on the £50,000 grant will be made by the council's executive committee once a full financial report has been compiled by officers.